PSA - 2019 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2019 Notes to the Consolidated Financial Statements at 31 December 2019

Minimum purchasecommitments A. In order to speed up its growth and reduce costs, the Group has enteredinto cooperationagreementswith other carmakersfor the joint development and/or manufacture of mechanical sub-assembliesor vehicles. These joint arrangementsenable the partnersto share projectcosts, deliveringeconomiesof scale that translateintocompetitive advantage. Under the terms of these agreements,the Group is committedto financing investment in research and developmentand specific tooling and to taking deliveryof a minimumquantityof products manufacturedby the joint arrangements.If it fails to honour this minimumpurchasecommitment, it will be requiredto pay a penalty designed to cover the related production costs borne by the partner.

Any adverseconsequencesof these commitmentsare reflectedin the consolidated financial statements as soon as they are considered probable, in the form of asset impairments or, if necessary, provisions for contingencies. For contractswherethe productsare manufacturedby the Group’s partner,capacityreservationfees are accountedfor as off- balance sheet commitments net of anyprovisions.

Capital commitments for the acquisitionof non-current assets B. This item corresponds mainly to commitments to purchase manufacturers.The Group’stotal commitmentto FAAamountedto property, plant and equipment. It also includes the Group’s €204 million.At 31 December2019, the Group had already paid commitmenttowards the two “Fonds d’AvenirAutomobile”funds €150 million intothesetwo funds. (FAA tier 1 and tier 2) set up to support automotiveequipment

OTHER NON-CURRENT ASSETS AND LIABILITIES

NOTE 9

OTHER NON-CURRENT ASSETS 9.1.

Notes 31 December 2019 31 December 2018 31 December 2017

(in million euros)

Excess of payments to external funds over pension obligations

7.1.E

851

640

630

Units in the FAA funds Derivative instruments Equity investments

39

48

69

11

8

6

196 636

409 564

393 607

Guarantee deposits and other

TOTAL

1,733

1,669

1,705

The Grouphas investedin the two funds“Fondsd’AvenirAutomobile”(FAA- tier 1 and tier 2). The Grouphas committed€204 millionto these two funds, €150 millionof which has been paid to date. These units have been classifiedas “at fairvalue throughprofit or loss” in accordancewith IFRS 9 (see Note 12.7.C.(2)).They are reportedas non-currentassets becauseof the lock-upapplicableto the Group’s investment.

OTHER NON-CURRENT LIABILITIES 9.2.

Notes 31 December 2019 31 December 2018 31 December 2017

(in million euros)

Liabilities related to vehicles sold with a buyback commitment

5.1.A.(1).(a)

4,932

4,667

4,180

Other

241

259

100

TOTAL

5,173

4,926

4,280

210

PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT